If you have a great credit rating, you won’t find it difficult to get a mortgage. Almost every lender will be more than happy to serve you. On the other hand, if your credit rating is low, you will face a hard time getting a loan to finance your new home.

Your credit reports and credit rating is quite important for creditors to find out if you are a good or bad candidate for a mortgage loan. Aside from this, the assessment of your creditworthiness allows lenders to get a better idea of the amount of money they can lend you with confidence. In other words, this can assure that that you will make the payments on time.

The credit reports and scores will help a lender know if you have paid back your previous loans without any missed deadlines. If you have had a lot of late payments, or payment delinquents, chances are that you have a poor rating. The mention of any of these can be a red flag to your prospective lenders. Since the goal of the lender is to make lots of money, they may take you as a risk.

Unfortunately, if you have changed your habits, they will still review your past to get an assessment whether it will be a good idea to do business with you. Similarly, if you have a credit score in the range of 750, the lender will still consider your debt usage. If your reports show that you have taking loans quite often, they may find it a bit too risky to grant you a loan.

First-Time Home Buyers

If you are a first-time homebuyer, getting a conventional home loan with poor credit rating can be a bit hard nut to crack. However, it’s not a goal that is impossible to achieve.

Tips to Qualify for a mortgage with Bad Credit

Given below are a few tips that you can use to improve your chances of qualifying for a credit rating. If you follow these tips, chances are that your application will be approved.

1. Make a Larger Down Payment

First, if you don’t qualify for a non-traditional loan, you can wait for a while and save money to make a larger down payment. The problem is that lenders consider borrowers with a bad credit score a great risk. Generally, lenders are willing to grant loans to lenders who can make at least 20% down payment. Therefore, if you can pay that much as down payment, you will be able to qualify.

2. Reduce Your Debt Usage

If you have poor credit rating and you are trying to get a loan, we suggest that you reduce your overall ration of debt-to-income. This ration allows a lender to figure out the amount of money you can afford.

3. Use Your Rental History

In most credit reports, you can’t find information about the user’s rental payments. But if you can, you can prove that you made all the payments on a consistent basis over the past 24 months. Aside from this, some other reporting tools can also. They may include RentTracki, Rental Kharma, and Rent Reporters, to name a few.

Before you go for a tool, we suggest that you do your homework to find out about the monthly charges and fees. Aside from this, you should find out if your private data can be protected and the steps you need to do if you cancel the service.

Keep in mind that these tools provide reports for only big credit bureaus. However, you can also find some that can send their reports to all of them.

4. Explain Your Circumstances and Credit Rating

Another good way is to write a letter to explain your situation. In the letter, you should mention the reasons of your negative points on your credit report. And you try to convince the lender that the mistakes won’t happen again.

Also, you should assure that that you are trying to handle the situation you are in. For instance, you can help them realize that you are looking for a job. Before talking to the lender, make sure you get documents to spell out the credit challenges you have been facing. Aside from this, if you can spell out the derogatory items on your credit history, you may be in a better position to get a mortgage.

When taking to the lender, make sure you are specific. You shouldn’t be afraid to provide details of your concerns and needs. This will save you from a lot of headache down the road.

Conclusion

Long story short, if you have a bad credit score but you are still looking for a lender to give you a loan for your first home, we suggest that you follow the tips given in this article. Make sure you also discuss the matter with your mortgage specialist or mortgage broker.

If you are looking for a good credit specialist, we suggest that you check out CREDIT SERVICES!

Most people only pursue a loan when they are in dire need of obtaining funds. These funds can be used for emergencies, a new car, and even repairs to the home. Whatever the reason a person needs a loan, it can be disappointing when they get turned down. Thanks to The Equal Credit Opportunity Act, lenders are required to disclose their reasons for denying a loan application. Below are three of the most common reasons.

Reason 1: Credit Reporting

The first thing a lender will do when someone applies for a loan is to pull his or her credit report. Credit reports offer the lender a lot more information than just a number. If a person has a large number of loans already outstanding, this may make a lender a little warier about increasing the person’s debt.

This credit report will also show the number of collection accounts, any past due accounts, and the payment history of the person applying for the loan. All of these are components of a credit report that can paint a picture for the lender, making them more inclined to lend you the money or deny a loan request.

Checking for discrepancies on a credit report may solve a lot of problems for a potential borrower. If they find that there are items on their credit report that are not theirs, they will need to call and get this rectified.

Reason 2: Insufficient Means for Payment

Lenders have to know that the money they are lending is going to be paid back. When a borrower does not have sufficient income or means to pay the loan back, a lender may be less inclined to give that borrower a loan.

In the massive amount of paperwork it takes to apply for a loan, the lending company will ask the potential borrower to list their income and be ready to supply proof that the income exists. Having this proof can help the lender justify lending the money if there are ever any questions as to why they did approve the loan.

Reason 3: Too Much Debt

Lenders take a hard look at a potential borrower’s debt-to-income ratio prior to lending them any more money. If a lender sees that a person is already using 50% or more of their earnings to pay on debts, a lender may consider them a high-risk borrower.

Loans are not the only thing that lenders will look at in terms of debt. The cost of living, credit cards, student loans, and collections accounts factor into the amount of debt a person has.

Hard Money Loans as an Alternative

If a potential borrower would like to try the loan application process again, correcting denial reasons is the first place to start. After checking the validity of the information on their credit report, reducing their debt-to-income ratio, and either adding collateral to a loan or proof that their income is sufficient enough to support the debt, they could try again. The most important thing for borrowers to remember is that double-checking for accurate information is the key. However, if the banks are still rejecting your application, another option for loans is going through a private hard money-lender. Hard money lenders provide loans based on real estate equity so they are a good alternative when banks don’t approve you.

In these unprecedented times when business are undergoing financial crisis, Hard Money Lenders like Alliance Group Capital can help you. Contact us for more information.

So, you have kicked off a new business, and you are looking for a way to get funds. First of all, you need to keep in mind that there is no best way to fund a new business. Each method has its own advantages and disadvantages. Moreover, a method that worked for one type of business may not work for your business type. Therefore, you should go over the options given below and choose a method based on the type of your business.

Self-finance

If you have set some money aside during the past few years, you can use it for your business. Self-financing is a good option as you won’t have to borrow from anyone. On the other hand, if things don’t go as planned, your hard earned money will be gone forever without giving you any return.

If you can’t risk losing your savings, this option may not be suitable for you. But if you have a large amount that you saved, you can invest some of it and save the rest for rainy days.

Bank Credit Cards

Using credit cards to fund your business is another good option, but keep in mind that you will be paying huge sums of interest for several decades because the interest rates on credit card transactions are very high.

However, the upside is that using bank credit cards to fund a business is an easy option as long as you are fine with high interest rates.

Friends & Family

If you don’t have enough savings, you can ask your family or friends for money. However, make sure you return the money on time or your relationship with that person may get affected. Plus, if your business fails, they will get upset because they have an emotional attachment with you.

Mortgage

You can’t get a bank loan unless you don’t have a good credit record and collateral. So, what you can do is mortgage your home or farm to get a loan. While this can get you a business loan, you will be paying back the loan whether your business becomes a success of failure. Your house or farm can get sold out if you fail to pay back the loan.

Angel Investors

Someone from your friends or family can become an angel investor for your business. They will provide funds for your small business in exchange of a share in the ownership of the venture.

Before you sign an agreement with your angel investor, make sure the terms and conditions of the contract are clear to both of you. This will help you prevent disputes in the end.

So, these are a few good options for you to get investment for your new venture. All of these options are good and work for small ventures. But make sure you have evaluated all the options before choosing one. The success of your business depends on the capital and if invested after a lot of thinking, your chances of success will go up.

Alliance Group Capital is the company that can help you get funds for your new business. Contact them as soon as you can.

Any potential investor wants to see a highly readable and believable business plan with a summary, a management team overview and financials but after submitting your plan many people think funding will just arrive when in reality it can take time. By following the steps below you will be able to avoid some of the most obvious mistakes when raising funds for your project

One – If you are a company that has brilliant technical knowledge and no real sales expertise do not advertise it. Information on your web-site including the management team biographies will clearly state the management teams background including their technical expertise, their degrees, their patents and such like but amazingly their go to market strategy in the business plan is usually incomplete and sometimes missing. The solution, make sure you have a credible go to market strategy with a credible sales leader. Nobody will invest if you don’t.

Two – Make sure your website is stunning. Too many companies think that running a business is all about product and the abilities of the technical team – frankly it isn’t. This may be true but today investors will always expect to see more. They want to be convinced and when they will go straight to your web site they are wanting to be wowed! Unfortunately, so many people provide what looks more like a school project. Make sure your website is utterly brilliant and that it doesn’t look cheap. Ask a variety of people if it looks modern, if it looks appealing, particularly the photos and ask if it is easy to navigate. Also please ensure that it is relevant – it’s not about how wonderful you are it’s about how you and your company will solve their challenges.

Three – If you are raising money through a prospectus or private listing make sure that your brochure stacks up. Many people do not place enough time and effort with the visual appeal of a Private Listing Brochure and again you don’t want to provide a sub-standard document that will fail at every level. Spend some time and money to ensure that you convey your messaging in a professional, crisp business-like manner and that it is logical and easy to read. Also don’t use random un verifiable facts – make sure that you underpin everything that you state will be possible with the latest research etc.

Four – don’t use jargon. Anyone who goes to your site or who takes a look at any promotional material designed to answer questions won’t stand for jargon which usually means nothing to them. If you must use jargon or acronyms, make sure there is an explanation – people won’t ask they will vote with their feet! A well written website and brochure is music to the ears of potential investors

Five – Make sure that on your website and all other materials that you have the same font. Make sure that the supporting marketing material looks great and make sure that the stories you tell are verifiable and relevant. Lastly please don’t be controversial People will make their mind up on quality and this includes the look and feel, the overall professional approach. If you can use proper references form proper companies. Don’t add something for the sake of adding something as it has to be contextual and relevant!

Follow these tips and life on the road to raising funds will be much easier.

If you are in the need of investment funds or have a project that needs investment contact Alliance Group Capital

The line in the sand has been drawn. You’ve vowed to never step foot back into that office alive again after working the same dead end job for ten years. It’s time to start that business you know for sure will succeed. All you need is to dedicate those sixty hours a week to your own bottom line. There’s only one roadblock. You have no money and the bank has already denied you for several other loans. All is not lost. Seek the help you need from those venture capital firms or angel investors you have heard so much about at meetings.

A venture capital firm is a collection of investors looking to throw their money into the next great idea that will grant them generous returns. With their money, your restaurant, retail store, or latest invention transforms from a day dream into a reality. Several options of repayment, ownership, and terms are discussed between you and your angel investors on how you will reward them for believing in your idea. First, you have to win their confidence.

The most important part of your business is your business plan. Before you approach a venture capital firm, do your homework. Transfer it from your brain to paper. Your goal is to create a business plan that will motivate investors to write your company name on that blank check. Also, in writing your business plan, you will discover how much you know or don’t know about the adventure in which you will embark. Or you may find the concept is not as fabulous as you imagined.

Start with research. Intense study uncovers little known nuances about your new chosen industry and fills holes in your concept. Identify your competitors. Dissect their company products, services and policies. What don’t they offer that you can implement into your business concept? Find a niche in the market that will set you apart from others who may be seeking the same clients, customers and investors you want to attract.

Next, examine the industry trends. Analyze the data. Find out when sales and profits are at their lowest. Are you merging into the gift basket business that suffers during the summer, after mother’s day? Brainstorm ideas you can include in your plan to overcome those industry wide obstacles.

Use your data to make logical predictions of future industry trends. Can you predict a disaster like the “dotcom” failure at the end of the twentieth century? Your potential investor friends will want to be shown the money. Show it to them in standard financial and cash flow statements.

Now, come back to the beginning and write a two-page summary of the company. This will serve as the introduction to your business plan. Some experts call it the Executive Summary. I call it the sales pitch.

Your summary will be the first section investors read about your business. If it doesn’t sell them, then it becomes the last thing they read about your business.

Take your time, do your research and make sure your business plan sells, sells, sells! Alliance Group Capital Client Center!

Yasheve Miller is web copywriter and internet marketing specialist whose primary focus us to generate leads and convert prospective customers into sales for his client. [http://www.yasheve.com] makes small businesses competitive with branding and marketing campaigns tailored to each individual business.

Fixing credit isn’t as difficult as you might think, if you understand the steps that need to be taken and try to get your credit reports fixed up. The problem with trying to do everything yourself is that the process can take a lot of time, effort, and patience. If you really want to get everything cleared up as soon as possible, the fastest way to fix credit is to request assistance from professional credit repair analysts – particularly those with actual lawyers involved.

In the internet world of endless options, finding the ideal credit repair service might not be as easy as most people would like. You have to filter out all of the ones that get a lot of negative reviews and have a reputation for scamming people. One red flag is any claim that seems too good to be true, such as “Increase Your Score 50+ Points in Just 30 Days!” Even in the best case scenarios, that will be HIGHLY unlikely, since it will take at least 30 days for them to hear back from the credit bureaus about whether or not your negative items will be removed. Even if they are, it’ll probably take a bit more time to start seeing the score increase.

Fastest Way to Fix Credit With a Legitimate Company

Still, there are LEGITIMATE companies out there, and working with them is the fastest way to fix credit for most people. It might also be in your best interest to consult with a debt settlement / relief company in addition to a credit repair company. It all depends on the severity of your credit issues and how much of it you are confident in handling yourself.

It might be easier to handle some of your credit issues yourself if you know exactly what is causing your score to be low. You’re entitled to request and review copies of your own credit report free once a year from all three bureaus: Equifax, Transunion, and Experian. If you haven’t already done that this year, do it right now. Examine it all carefully, and if there is any information that seems inaccurate or unfair, the report should provide you with the information you need to dispute that information.

You can also try to catch up on any bills you are struggling with. Try your best to keep up with all of your payments.

If it’s all too much for you, then it’s okay to seek help. Consider a company like Alliance Group Capital, if it’s available in your state. There are a lot of positive reviews that indicate that this firm offers the fastest way to fix credit.

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

• • It’s easy to determine the exact cost of financing and obtain an increase.
  • Professional collateral management can be included depending on the facility type and the lender.
  • Real-time, online interactive reporting is often available.
  • It may provide the business with access to more capital.
  • It’s flexible – financing ebbs and flows with the business’ needs.

It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?

Tracy Eden is the National Marketing Director for Commercial Finance Group (CFG), which has offices throughout the U.S. and Canada. CFG provides creative financing solutions to businesses that may not qualify for traditional financing. Visit http://www.cfgroup.net or contact Tracy at tdeden@cfgroup.net.